If a credit union or other mortgage lender makes the business decision to only offer qualified mortgages, that fact alone would not increase the likelihood of a fair lending exam.

So said the NCUA and four other federal regulators Oct. 22 when they released guidance that clarified concerns over qualified mortgages and the resulting liability under the Equal Credit Opportunity Act.

The Consumer Financial Protection Bureau's ability-to-repay rule implements parts of the Dodd-Frank Act that requires creditors to make a reasonable determination a consumer is able to repay a mortgage loan before extending credit.

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Regulatory & Compliance